DBSV S'pore Wired Daily 13 November 2013

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DBSV S'pore Wired Daily 13 November 2013

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Publish date: Wed, 13 Nov 2013, 01:48 PM

Today's Focus

Religare Health Trust - Weak INR to dampen FY15F DPU. Downgrade to HOLD, TP revised down to

S$0.81

SIA - Results unexciting but value remains attractive. Maintain BUY and S$11.40 TP

Noble Group - Earnings set to bottom out next quarter in the absence of Agriculture and Yancoal losses. Maintain HOLD, TP lifted to S$1.15

2Q14 DPU of 2.06 Scts for Religare Health Trust within expectations; 1H14 DPU of 4.05 Scts forms c.51% of forecasts. Operations trending well with overall occupancy up. However, weak INR is a key dampener to FY15F DPU, assuming INR55/SGD, c.11% lower from our previous assumption. Downgrade to HOLD, TP revised down to S$0.81 (Prev S$0.94) on weaker INR.

Singapore Airlines' 2QFY14 net profit improved 78% y-oy to S$161m and is on track to meet our full year forecast. The mild improvement in core passenger and cargo businesses is due to lower costs. Interim DPS of 10Scts was declared, vs 6Scts last year. Maintain BUY and S$11.40 TP

3Q13 core profit for Noble Group rebounded to US$120m, excluding losses from Yancoal. The agriculture

segment returns to profit. Noble's earnings are set to bottom out next quarter in the absence of Agriculture and

Yancoal losses. FY13 earnings revised down but TP lifted to S$1.15 (Prev S$ 0.93) as we roll over valuation to

FY14F. Maintain HOLD.

Results for City Developments in line, residential profit recognition and leasing income supporting bottomline. The Group is growing new platforms to mitigate declining landbank in Singapore. It would continue to focus on building its overseas development strategies such as the 28 Pavilion Rd in Knightsbridge. Maintain Hold with a

slightly lower TP of S$11.09 (Prev S$ 11.24).

3Q13 results for Pan-United Corporation in line; earnings growth helped by lower costs. The muted earnings

growth is attributed to subdued construction activities this year. Infrastructure outlook remains positive while

construction pipeline remains robust. Maintain BUY and S$1.21 TP.

Asian Pay Television Trust's (APTT) 9M13 asset EBITDA of S$150.3m was in line and comprised 75.0% of its FY13F guidance. APTT confirms plans for expansion into Greater Taichung area; but didn't give details citing competitive reasons. We lower our TP to S$0.91 (Prev S$0.97), assuming additional capex of S$80-100m in the long term. BUY for ~10.7% yield - highest among business trusts listed in Singapore and HK.

2Q14 results for Biosensors below; stent sales and licensing revenue disappoint and margins weaken. We believe outlook for BIG will remain soft as we see margins trending down from the weak pricing environment and poorer sales mix. Management has also revised their revenue guidance for FY14F from 15% growth to moderately positive. Our analyst has cut FY14F/FY15F earnings by 30%/38%. Maintain HOLD, TP reduced to S$0.94 (Prev S$ 1.09).

First Resources reported 3Q13 net profit of US$51.4m (-20% y-o-y; +36% q-o-q) - above our expected range of US$38-40m. This brought 9M13 earnings to US$152.7m -representing 76% of our full year forecast. The better-thanexpected performance was due to 22% q-o-q jump in plantations revenue as well as 17% q-o-q rise refining and processing revenues. Our forecasts and TP of S$2.14 are under review, pending management inquiries and further analysis.

Golden Agri booked 3Q13 core earnings of US$30.2m (-33% q-o-q, -65% y-o-y) - significantly below our expected range of US$108-113m. The poor results were mainly due to US$2m loss in China operations as a result of poor crushing margins, lower CPO and c.14% sequential drop in sales volume. We cut FFB output forecasts given the lower guidance; but have raised CPO ASP by 4-6%; given better than expected 9M13 ASP. FY13F/FY14F/FY15F earnings were hence cut by 24%/9%/9% to US$263.8m / US$386.9m / US$500.1m, respectively. The fair value of the stock is now S$0.46 (Prev S$0.48). Counter is NOT RATED.

Courts' 2Q14 results below expectations, revenue grew 3% to S$223m but earnings declined 55% to S$7.2m. 1H14 earnings now account for only 34% of our full year estimate. The surprise came from worse than expected Malaysia same store sales and much lower gross margins. Our current Buy call and S$1 TP are under review. Will provide more updates.

Elektromotive has signed an agreement to acquire 51% equity stake in Asia Galvanizing Pte Ltd (AGPL) for S$7.65m. The purchase consideration will be satisfied by cash of S$3.6m and allotment of 162m new shares at S$0.025 per share. AGPL recorded unaudited net profit after tax of approximately S$1.5m and net tangible asset value of S$3.9m for 11 months ended 31 August 2013. AGPL provides high quality hot dip galvanizing services to the building & construction, marine offshore and general steel fabrication industries. The proposed acquisition is expected to strengthen to the Group's performance.

Technics Oil and Gas has been awarded the 2nd leasing contract and outright sales contract worth a total of S$10.1m for 9 reciprocating gas compressor engine driven packages from Indonesia and Malaysia.

A hotel site at Havelock gets top bid of $30.1m, or $1,303.24 psf. I Hotel put in the highest bid among nine

valid offers, 6.6% more than the next highest offer of $28.09m, or $1,216.62 psf ppr. The market was expecting

the winning bid at between $920 and $980 psf ppr.

Source: DBSV

RHT HealthTrust (RF1U)SIA (C6L)CityDev (C09)PanUnited (P52)Asian Pay Tv Tr (S7OU)First Resources (EB5)Golden Agri-Res (E5H)

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